Financial Management

Step 1: Understanding the primary and secondary markets.
Securities are initially purchased and sold in the primary market when they are first issued by companies. However, once they are issued, they are traded in the secondary market.

Step 2: Conclusion.
Therefore, the statement is false, as securities are not bought and sold in the primary market once they are issued.

Step 1: Understanding the objectives of financial management.
The key objectives of financial management are:
1. Profit Maximization: The primary goal of financial management is to maximize the profitability of the business. This involves making decisions that increase the company's profitability while ensuring the efficient use of resources.
2. Wealth Maximization: Financial management aims to maximize the wealth of shareholders by increasing the value of the business in the long term. This can be achieved through strategic investments and value-creating decisions.
3. Ensuring Liquidity: Financial management ensures that the business has sufficient liquidity to meet its short-term obligations, enabling smooth operations without running into cash flow problems.

Step 2: Conclusion.
These objectives guide financial managers in making decisions that contribute to the financial health and growth of the organization.

Step 1: Understanding dividend decisions.
Dividend decisions are a crucial part of financial management. They involve determining the proportion of profits to be distributed to shareholders and the amount to be retained for reinvestment.

Step 2: Conclusion.
Therefore, the statement is false, as dividend decisions are an essential part of financial management.